If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining? Prepare a multi-step income statement for 2013.Note: Do not use negative signs with your answers.LONGO & COMPANYIncome Statement2013Net Revenue$463,500Cost of Goods Sold17,300Gross Profit on Sales46,200Operating Expenses31,000Operating Income15,200Other Expenses1,200Income before Income Taxes14,000Income Tax Expense10,400Net Income3,600Calculate the company's return on sales ratio. Round answer to one decimal place.If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?Return of sales for 2013=0 % and thus,the company's profitability is declining

The return on sales is calculated as operating income divided by net sales.

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Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?

Prepare a multi-step income statement for 2013.
Note: Do not use negative signs with your answers.
LONGO & COMPANY
Income Statement
2013
Net Revenue
$4
63,500
Cost of Goods Sold
17,300
Gross Profit on Sales
46,200
Operating Expenses
31,000
Operating Income
15,200
Other Expenses
1,200
Income before Income Taxes
14,000
Income Tax Expense
10,400
Net Income
3,600
Calculate the company's return on sales ratio. Round answer to one decimal place.
If Longo's return on sales was 20% in 2012, is the company's profitability improving or declining?
Return of sales for 2013=
0 % and thus,
the company's profitability is declining

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